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16.5¢ avanco resources limited

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happy Hippy

5,651 Posts.

45

13/03/15

15:19

Post #: 14910363
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Originally posted by Kalenn ↑

Tism,

I don't think you have your head around AVB.

The ore didn't disappear it just got more honestly classified as ore that was less likely to be processed at low copper prices. Something few companies yet do but I believe it will start to happen more often under JORC2012 If you read the relevant company reports you'll see that they still discuss extending the life of mine with this ore in the second decade of production. That grade you are referring to, between 0.9 and 0.7%, will be used to build the ROM pad and will be available for processing including mixing with the high grade ore if and when required.

There is not an increase in over burden, the infill drilling that resulted in JORC reserves made further discoveries in the western section of the ore body that means AVB will start extracting ore for processing almost from surface. This will actually result in reduced capital costs to start up the mine and reduce the cost of construction.

I also think that if you are going to claim the company has a lack of "technical expertise" you should produce some evidence to support the claim rather than just down ramping. Personally, I've posted in the past about the track record of several of our directors and their extensive technical expertise (along with supporting facts). I also think it flies in the face of your claim that Xtrata/Glencore would select AVB to partner with on the assets they pooled into the Pedra Branca deal? That was a competitive tender and AVB won. Don't you think Xtrata would have been looking for the highest probability to get a cash return for their assets? Only successful mining of those assets will produce a return for Xtrata/Glencore. Choosing partners with the appropriate level of technical expertise would have been high on Xtrata's decision list.

So in addition to TP and SM, Wayne Phillips with be building and commissioning stage 1. Just in case you have forgotten about his technical expertise:

Technical Director of Kinross South America and oversaw Kinross's Technical Service's activities in Brazil and Chile. Responsibilities included exploration, project development and assistance to operations in compliance and environmental regulatory issues. Mr Phillips was involved in the $470 million expansion of the world class Rio Paracatu gold mine and process plant in Brazil after which capacity was increased from 20 to 60 million tpa. Mr Phillips specialises in providing innovative practical solutions to complex metallurgy, with particular expertise in flotation and hydrometallurgy including copper oxide leaching and SX-EW. Mr Phillips spent several years working within major engineering companies including SNC Lavalin, Kvaerner and Minproc as client representative for a number of major mining projects.

(my bold, wonder what will happen to that lower grade ore?)

Also worth reading the ASX release on his appointment if you don't want to google him. (January 2013)

APPOINTMENT - DIRECTOR OF
OPERATIONS
Avanco Resources is pleased to announce that Mr Wayne Phillips has been
appointed as Director of Operations. Mr Phillips engagement brings a wealth of
Brazilian mine building and operational experience to Avanco’s pending
transition from explorer to copper producer.
Mr Phillips is a Brazilian national and an outstanding industry professional
with a solid track record of project management and access to an extensive
Brazilian network. Mr Phillips will assume immediate responsibility for
development, construction and production from Avanco’s Carajas Copper
Projects.
In 1977 as a chemical engineering graduate from the University of Rhodesia,
Mr Phillips migrated to Brazil and established a very successful metallurgical
consulting business. Mr Phillips has been credited with participating in the
engineering and commissioning of the Cariaba Copper Smelter1 and the design
and construction of a number of small copper mines in northern Brazil.
Mr Phillips has acquired significant international experience working with
engineering groups including SNC Lavalin, Kvaerner and Minproc. As an
expert in sulphide flotation Mr Phillips has participated in more than a dozen
feasibility studies and adjudicated the award of and supervision of
numerous construction contracts.
For the last ten years Mr Phillips has been Technical Director for Kinross Gold,
South America and has played a pivotal role in the recent expansion of
Kinross’s giant Paracatu Gold Mine2 in Brazil.
Tony Polglase
Managing Director
1- The Cariaba Outokumpu Flash Copper smelter is located in the northeast of Brazil
2- The world class Paracatu Gold Mine is one of the largest mines in the world with
treatment plant capacity exceeding 60Mtpa

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The only thing that has its 'head around AVB is the SP. You paint this wonderful picture Kalenn...how come it is not reflected in the SP. Recall or the wild estimates of what the SP was going to be after JORC and ML.
No one said 7 cents

AVB Price at posting: 7.2¢ Sentiment: Hold Disclosure: Held
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